Table of Contents
- Open Your Shop And Begin Your Business
- Phase A : Planning And Preparation
- Phase B: Implementation And Opening
Open Your Shop And Begin Your Business
Opening your shop and starting your own business in retail may be a big dream for several people irrespective of whether or not they have already got experience as a retailer or not. Pleasure within the purchase and sale of products and customer contact, but also the prospect of generating the next income through your own business, let some make this dream come true.
Just follow these Phases step by step :
Phase A : Planning And Preparation
1. Do You Have What It Takes To Become Self-Employed?
“Is self-employment right for me?” This is a question that every potential founder should ask themselves right from the start. In addition to the professional qualifications that you should have to open your shop, personal requirements also play an important role in making the right decision. Answering the following questions can give you some clarity:
- Can you motivate yourself?
- Can you make decisions independently?
- Are you ready to work a lot – maybe a lot more than now?
- Are you resilient and can you deal with stress?
- Can you deal with setbacks?
- Do you have the support of your family and friends?
After answering these questions, you should also consider why you want to set up your shop. Do you have a vision and is independence your stated goal? Or are you “only” dissatisfied with your current situation and want a change? You must be clear about this – because if the latter is the case, self-employment may not be the right thing for you.
2. Develop A Business Idea For Your Store
If you want to open your shop, you must be clear about the following: What do you want to sell? And who do you want to sell to? As a rule, you already have a certain interest or hobby that you want to turn into a profession by starting your own business in retail. Nevertheless, there is a need for a concrete concept for the business plan that has to be worked out down to the last detail – regardless of whether you want to open a corner shop, a health food store, an outlet store, a supermarket or a sports shop. Your competition is usually tough. So think of a concept that stands out from existing shops – be it through a unique product, a special customer service or a special and extraordinary atmosphere in your shop. Your creativity knows no limits!
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3. The Right Location For Your Business
If you want to open your own shop business, the right location is crucial for your success. These factors have to be considered when looking for a suitable location:
Open your shop in a place where you have the chance to attract a lot of walk-in customers, for example in pedestrian zones or shopping centers. Depending on your target group, you choose certain parts of the city. Before doing so, you should have the purchasing power data of your region determined in the course of the market analysis to be able to make a first forecast of the profitability of your business opening.
Analyze the business environment at your desired location in advance. What about the competition there? For example, it doesn’t make sense to open a second flower shop on a street where there is already a florist. You can find out what a competition analysis looks like in our start-up area.
You found a nice shop, but no train or bus is going there? Then maybe you should say goodbye to the idea of opening your shop right there. Because it will be important for your customers that they can reach your store easily and easily. Therefore, look for commercial properties that are connected to the public transport network. The parking options also determine whether your customers want to (and can) stop in your shop.
You are already being tested here. For one thing, it is advisable to keep the fixed costs as low as possible so that your business makes a profit. But if you want to open your shop that is conveniently located, has a lot of potential for walk-in customers and is easy to reach, it can mean expensive rent. However, you shouldn’t save at the wrong end. What use is a cheap shop space if no customer comes by?
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4. Cost Calculation For Your Shop
Of course, opening a shop is costly. For one thing, you have to invest a lot in advance. The amount of the investment costs depends, among other things, on the following factors:
- Do the rooms need to be renovated in advance?
- How do you imagine your facility and how much does it cost?
- What tools do you need (e.g. checkout systems, office supplies, etc.)?
- How much do you have to spend in advance for the warehouse?
In addition to the investment costs, you also incur so-called running costs, i.e. regularly recurring costs. This includes, for example, expenses for rent, wages, taxes or even telephone and internet. At the last point, you should get various offers, since many business customers offer special offers at favorable conditions. B. good connected, M-net or O2. Unitymedia even has a special start-up package on offer.
5. Business Plan For Your Store
The most important tool in your start-up phase is the business plan. Here you formulate your concrete business idea and explain how you would like to implement it. A well thought out business plan will help you finance your store because it will convince lenders. It also serves as an orientation and testing tool. Based on your business plan, you can always see where you are with your shop and to what extent you have already achieved your goals.
Phase B: Implementation And Opening
1. Requirements To Open Your Shop
According to trade law, you do not need to have any special professional qualifications if you want to open your shop. Unless you want to offer weapons, over-the-counter medicines, or certain animals. However, we recommend that you acquire specialist knowledge of your merchandise and industry-specific knowledge. You only have to make a formal business registration. Depending on the city or municipality, the costs range from 20 to 65 euros. Since you are considered a merchant in retail, you must also register in the commercial register. This costs around 250 euros.
The Federal Ministry for Economic Affairs and Energy has put together a guide to help the authorities find their way through the jungle of authorities. There you can enter your start-up industries and start-up location and find out where the relevant positions are in your area.
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2. Name, Logo, And Establishment Of Your Shop
The concept of your shop should, of course, be reflected in the name and the logo. Only if everything is consistent can you convince potential customers and carry out suitable marketing campaigns.
The design of your shop should also be chosen according to your concept. Customers are only happy to shop here and come back if they fit the branch of their shop and are also designed to be attractive to the customer. As a rule, depending on the size of your shop, you have to count on 50,000 to 100,000 euros to set up your shop.
3. Purchasing Goods For Your Store
Your goods are of course the most important thing when you open your shop. Whether you are selling clothing, offering organic products or selling sporting goods – a good contract with a reliable supplier is the be-all and end-all for your success. Compare different offers here and take your time choosing. Of course, a low price is an important argument for choosing your supplier. However, the quality of the goods is at least as important.
4. Find Employees
Depending on the size of your shop, you will hire employees sooner or later. Choosing your team is an important factor in the success of your business. For one thing, you need reliable and capable employees. On the other hand, these must also fit you and your concept. Therefore, invest enough time to search. In addition to job interviews, it makes perfect sense to invite applicants to try them out. This way you can get to know your potential employees “in action” and get a feel for whether they fit you.
5. Marketing For Your Store
Since your competition is tough, proper marketing is essential to draw attention to your store. Depending on the concept and budget, there are various options:
hand out flyers, invite to an opening ceremony and offer vouchers or special offers at the start of sales. Print ads are also an option, but they are comparatively expensive.
Especially with a small budget, online marketing campaigns are ideal for promoting your shop. Social networks such as Facebook, Instagram or Snapchat are particularly suitable for reaching potential customers on the Internet. In this way, you can appealingly visualize your offer and, with good reviews, also benefit from a kind of “word of mouth” through likes, shares, etc. Besides, an entry on Google My Business or Google Maps is worthwhile, so that your shop can be used to find Google Search.
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6. Properly Secure Your Store
Commercial coverage: To be financially secure in the event of damage, you need the right company insurance for your shop.
- Liability is essential as you are required by law to be liable for damage that you cause.
- You should also take out business insurance to ensure the furnishings in your shop as well as your goods and stocks.
- Also, commercial legal protection insurance is recommended, should you ever get into a legal dispute.